AND STOCKER CATTLE
(Federal-State Market News)
St. Joseph, Mo.
This Week Last Week Last Year
282,300 177,300 240,400
Compared to last week, steers and heifers sold uneven; 3.00 lower to 1.00 higher. Demand was reported moderate to good nationwide as receipts returned to normal following the Memorial Day holiday week. Order buyers were wanting cattle to fill empty pens; however, most were wanting to take on
inventory at lower prices. Cattle feeders are faced with high costs of gain as corn continues to be high at many areas nationwide and the fed cattle market at 120.00; however, with the back months of the futures contracts on either side of 130.00 there is still a lot of interest in feeding cattle.
The heat has arrived across the midsection of country with a vengeance as many areas that never see 100 degrees in a summer have already experienced that. Couple that with the drought in the Dakotas and it makes for a very disconcerting year for many ranchers in the Northern Plains and Upper Midwest.
Although still very hot and humid, the weather seemed to break from chances of rain every day and farmers went to the fields in full force to make hay while the sun shines.
Most of the coming week looks dry so there should be many tons of hay put up this week as farmers try to get caught up.
According to preliminary slaughter data, Year-to-Date Cattle slaughter through May is near 7 percent more than last year and near 6 percent more than the previous five-year average. All classifications of the beef cattle segment (steers, heifers, beef cows and bulls) are around 8 percent more than a year ago and 18.5 percent more than the previous five-year average.
Beef cow slaughter has been aggressive this year with almost 1.4 million cows harvested so far this year as of the end of May. The last time that the beef cow numbers were this large at this time was in the contraction year of 2010. Those cows were then sold off and an aggressive heifer slaughter was noted at the same time and just a few short years later, high prices for feeder cattle were noted in 2013 and 2014.
Negotiated live trading of fed cattle in the Southern Plains sold at 119.00 to 120.00, while dressed sales in Nebraska sold at mostly 191.00. Choice boxed beef values hit a plateau and closed the week 1.42 lower at 337.56, while Select was 6.52 lower at 305.21 for the same time period. Boxed-beef values seem to have topped with prices staying in line with last week’s trade range with analysts predicting a lull in beef demand as consumers react to the higher retail prices and hotter weather moving in.
Weekly Cattle Slaughter under federal inspection estimated at 665K for the week, 127K more than last week, and 20K more than a year ago. Auction volume this week included 57 percent weighing over 600 lbs and 42 percent heifers.
Northwest Weighted Average Direct Feeder Cattle
Weekly Summary WA-OR-ID-UT
This Week Last Week Last Year
805 1700 380
Compared to last week: No recent test for a comparison of trends but a higher undertone was noted. Demand moderate to good. Supply included: 100% Feeder Cattle (69.6% Steers, 30.4% Heifers). Feeder cattle supply over 600 lbs was 100%. Unless otherwise noted, Feeder Cattle prices FOB based on net weights after a 0% shrink or equivalent, with a 0 cent slide >600 lbs. Livestock reported this week originated from ID, OR, UT.
Steers — Medium and Large 1
180 Head: 800 lbs, 131.62 Current FOB
25 Head: 840 lbs, 138.00 Current DEL
60 Head: 875 lbs, 134.00 Current DEL
225 Head: 900 lbs, 131.44 Current DEL
70 Head: 825 lbs, 146.00 Aug DEL
Heifers — Medium and Large 1
180 Head: 750 lbs, 126.62 Current FOB
65 Head: 850 lbs, 128.00 Current DEL